When you start your own business you invest all the money, energy, and time you have in order to see it grow and prosper. You do everything you can to minimize mistakes and build a company that stands out to be successful. The business world is tough and requires patience and perseverance. Making a corporation is a step that you will come to at some point and as with any major step you take with your business, you want to make sure you do it right. We have gathered some mistakes that you should avoid when you incorporate your business.
1. Forgetting To Give It A Name
Incorporating a business without giving it a name would still be legal. You will be given a number, but not having a name will not allow you to work on branding and building customer loyalty. It might take you a while to think of a name for your company, but once you do you can start advertising and making your services and products known. It would be better if you have a list of names prepared just in case the name you have in mind is already taken by another company.
2. Not Describing The Business Correctly
Knowing what your business is all about to you as a shareholder is not enough. When you incorporate you have to let the shareholders know what their rights will be and also how they are going to get paid. Note that any modifications will cost you money so try to think ahead as much as possible.
3. Not Hiring Experts
Legal details of incorporation are many and you don’t want to forget anything or get anything wrong. Although many lawyers can possibly help you with your business, hiring people that are experts in law for corporates will lift the weight off your shoulders and help you deal with other matters that require your attention. These people are professionals and have dealt with many companies before, they will prepare the required documents needed for the process. A mistake in this process will cost you a lot and you don’t want to be paying money that should be going somewhere else.
4. Feeling That Paying Taxes Is Not For You
If you are not making a lot of money it is easy to feel that you should not be paying any. All businesses should be paying taxes or there will be penalties and you might end up losing your business altogether. Even if you do not lose your business, you definitely do not want to start your journey in the business world with the reputation of someone who does not pay his taxes. Make sure you know all the tax rules and follow them.
5. Not Choosing A Business Structure
There are types of business structures, and not choosing one can be harmful to your business. When you are in the process of incorporating your business, read about the different business structures and pick the one that is most suited to your goals and vision. Note that going with the wrong structure can be extremely costly so read carefully before you decide.
6. Not Selecting A Board Of Directors
You cannot do everything yourself. You need people to help you, people who share your vision and who can help you grow your business. Many businesses fail because of inner conflicts because people inside the business are not on the same page. Choose names that think like you do and are good listeners. Make a list of a team of individuals who are great at decision-making. This list should be given to the shareholders to vote on before you fill the incorporation papers.
6. Now That You Have Incorporated Your Business, What’s Next?
Now that you have incorporated your company, it is time you start working on the hiring and the marketing. Your employees are your partners of success, choose them wisely and invest in them whenever you have the opportunity.
As for marketing, this is one of the domains where you cannot go cheap. You have to get your product or service known to the customer and you have to stand out from the competition. Study your competition well but don’t copy them, learn from their mistakes as well as their success stories, especially if they have been in business years before you.
The road to success is not easy and it is definitely not paved with roses, but since you have decided to start your own business, we assume you already know that. Embark on this journey of having your dream come true with high hopes and fight for your dream with all your strength.
Arm yourself with all the knowledge you need about making your position legal to avoid paying more than you should. Read once, twice, and thrice about every single step before you go through with it, because in the business world, correcting mistakes equals money and time, and these are among your most valuable assets.